The do's and don's of life insurance

These tips are very essential to help you pick the best life insurance policy around

08:39 19 November 2013

A lot of people in the past, all in an attempt to explore the full benefits of life insurance policies, have ended up in disappointment as they didn’t know what factors to follow in order to choose the right company. The tips below have been specially researched in order to help you come up with the right life insurance policy.

Do’s

• Always look through your life insurance policy from time to time in order to spot changes made without your consent and adjust to them.

 

• Ensure your policy is in trust so that all payouts made on it will not be subjected to inheritance tax. Doing this is totally free and stress-free.

 

• Ensure that the policy covers all your main debts starting with mortgages to outstanding credit card debts.

 

• Its better you purchase the policy at a young age because it is always cheaper then.

Don’ts

• When doing your life insurance calculations, ensure you include future costs such as your children’s school fees, home improvement costs, potential university fees, etc.

 

• Try to avoid buying joint insurance as much as you can; even though many people claim it is cheaper, it is not so in some cases.

 

• Never think the cost of a life insurance policy determines its quality as some are only expensive because they have made a name in the business. Explore other available options before coming up with the best and cost effective one.

In conclusion, life insurance is not legally required for the acquisition of a mortgage but you will seldom be given the loan if you don’t have it because lenders see it as a way to cater for your family if you die as they may have no choice but to take back your house.